302 posts categorized "Pop Culture"

Monday, July 20, 2015

It seems that the "SSL Secure Site" notation on AshleyMadison.com was as dependable as the promise of its clients' wedding rings.

Which is to say, not very.

That's right. The cyber security and privacy of the adultery website has been violated.

Hey, no judging here. But I do want to offer the philandering members of the website, which advertises using the slogan "Life is short. Have an affair.", some divorce related tax tips.

Just in case the cyber infiltrators follow through on their threat to make public the info on the 37 million marital cheaters.

And just in case your spouse might not take too kindly to your participation.

Brian Krebs, whose Krebs on Security blog first reported the breach, said the hackers claim to have completely compromised AshleyMadison's user databases, financial records and other proprietary information.

If that data is released and your marriage subsequently turns shaky, you might want to check out my earlier blog posts on divorce and taxes. Here are a few to get you started:

Monday, July 13, 2015

Disney is known for its princesses. That's fitting, because from a corporate tax position, the entertainment behemoth is a king.

Beast and the Disney princess beauties by Jennie Park via Flickr

And boy is it good to be king. Disney just got a royal tax deal from Anaheim.

Tax deal for possible future tax: The Southern California city that is home to Disneyland just extended its entertainment tax agreement, which has been in place since 1996 and which was set to expire next June, with Disney for 30 more years.

In the original deal almost 20 years ago, Anaheim promised that if it ever enacted an entertainment tax, it would give Disney an incentive payment equal to whatever the company wound up paying in taxes.

In exchange for continuing this arrangement -- which, keep in mind, is for relief against a tax that has yet to be created -- for three more decades, Disney agreed to invest $1 billion in its theme parks by then of 2024. Expansion must begin by the end of 2017.

The tax deal could be extended another 15 years if Disney invests an additional $500 million by Dec. 31, 2045.

Locking down Disney: I get it. Disneyland is Anaheim's claim to fame. Sorry Angels, but even you admitted you don't register on the local radar by changing your Major League Baseball team's official name to the stupid geographically confusing Los Angeles Angels of Anaheim.

But really, city officials, if you didn't offer a break on a possible future tax, just where do you think Disney would take its properties?

And even if the theme parks and surrounding lodgings didn't move, do you really think Disney would let them fall into disrepair? It's going to make the upgrades anyway, and claim tax federal (and probably other state) tax benefits for those.

Disney doesn't need to be bribed with taxpayer money to do what it already had planned.

Jobs, jobs, jobs: The closeness of the city council's vote, as well as the overflow crowd that argued for and against the tax break extension during the lengthy July 8 public hearing, indicated some misgivings.

Three Anaheim council members voted to approve the deal. Two, including the city's mayor, voted no.

Murray apparently was referring to potential taxes that would be needed to pay for transportation needs. Part of Disney's promised expenditures also would go toward street improvements surrounding Disneyland and its California Adventure, as well as a 5,000-space parking lot.

Again, who will this roadwork that would it easier to get to Disney operations help? You got it. The House of Mouse.

Those who agreed with Murray and two of his council colleagues included workers who would benefit from the estimated (in a city-commissioned report) that 10,206 construction jobs would be created in the first phase of Disneyland Resort's expansion. Almost 2,000 more jobs would be created, according to the report, as part of ongoing operations.

Unwisely limiting tax options: Others, however, were concerned about a long-term deal that would tie the hands of future city councils without regard to what future city and economic concerns might be.

Tait supported the tax exemption in 1996, but voted last week against continuing it in part because of the city's current $500 million unfunded pension obligation.

Downsides of corporate tax deals: Cities nationwide, as well as state governments, make sweetheart tax deals all the time with big businesses to keep them or get them to relocate within their borders.

Such tax bribes, however, don't necessarily work out for all citizens.

Some opponents say the deals often are thinly veiled patronage programs, with corporate friends (and potential high-dollar campaign donors) of powerful politicians getting the best breaks at taxpayer expense.

Some Anaheim residents were concerned that the corporate entertainment giant would pocket most of the savings rather than spread it among line workers at the parks.

Tax bribes not decisive: Others argue in general against such corporate tax break deals. They contend that responsible companies -- and don't we all want good corporate citizens as our neighbors? -- stay or move based on many factors other than taxes.

Why then should taxpayers have to subsidize business activity that would happen on its own?

And the most cynical among us, and I say "us" because I'm part of this group, say that the companies simply play locations against each other to wring the best breaks they can out of the place they plan to call home regardless. I'm looking at you, Seattle-based Boeing.

Mike Sorrentino, known as "The Situation" when he starred on MTV's quasi-reality show, has found life off the beach less appealing.

Sorrentino's serious situations: In June 2014, some employees of Sorrentino's Middletown, New Jersey, tanning salon complained that their paychecks bounced. The Situation blamed issues with a change in payroll companies.

Later that month, Mike and his brother Frank had a disagreement at the fake tanning facility, leading to an assault charge and court-ordered anger management sessions for The Situation.

And last February, The Situation saw his tanning salon shuttered -- no, not for tanning tax troubles -- for nonpayment of rent.

Tax troubles top it off: The Sorrentinos did, however, encounter some tax issues. In September 2014, Mike and his other brother Marc were indicted for allegedly filing false personal federal income tax returns.

Marc faces three criminal tax counts, Mike two. The brothers also were indicted on one count each of conspiracy.

Earlier legal fee issues: It's not the first time he and his legal advisers have had money disputes. Mike and Marc were sued in July 2014 by the firm Wolfe Law Miami for allegedly not paying $29,175.20 in legal fees for services rendered from 2009 to 2013.

The Florida firm was hired by the brothers in 2009 "to prosecute a number of lawsuits and to handle a number of business transactions," according to court papers.

That fee situation was settled in September, just before Uncle Sam filed the tax evasion charges against the Sorrentino brothers.

"To date Mr. Sorrentino has not been able to meet the obligations of the fee agreement and there is no reasonable expectation that he will be able to do so," Sapinski said in his filing with the federal court asking to be released from the case.

"Representation of Mr. Sorrentino has required and will continue to require counsel expend his own funds for disbursements and costs related to preparation and trial," added Sapinski, who is Vice-Chair of the Tax Litigation Practice Group at Sills Cummins & Gross P.C.. "It would be a significant hardship for me and my firm to continue to represent Mr. Sorrentino without any reasonable expectation of payment."

Mike Sorrentino's trial is set to begin on Sept. 14. If convicted, he could face 11 years in prison in addition to the unpaid taxes, plus penalties and interest.

Yep, life definitely is that other five-letter "B" word for The Situation right now.

So that you don't end up in trouble with the Internal Revenue Service or your tax attorney, pay your taxes! If you're bill is bigger than you expected, the IRS offers several payment options that can help keep you out of court … or jail.

I thought the characterization was just part of cartoonist Matthew Inman's exaggeratedly offbeat sense of humor, which is further demonstrated by his July 4th drawing there to the left.

But Inman nailed it.

All across the country this long weekend we have the fireworks and terrified pets and, yes, the over-consumption of booze.

Biggest booze days:Independence Day is one of the biggest days for alcohol consumption in the United States, according to the latest study by breathalyzer manufacturer BACtrack.

BACtrack's fourth annual Alcohol Consumption Report, which is based on data collected anonymously from users of the San Francisco-based company's products, reveals that the Summer Solstice and July 4th are tied for the booziest days of the year.

I can see how the official start of the summer season offers some extra drinking time. It is, after all, the longest day of the year. Drinks until dark!

And with Independence Day being the most important in our country's history, it's also no surprise that folks want to celebrate by raising a glass or two or more.

The holiday this year could be especially intoxicating since July 4, 2015, falls on Saturday. The BACtrack report says that eight of the 13 biggest drinking days of the summer are Saturdays.

That Saturday occurrence also means most of us have an extra day to celebrate. Today, July 3, is the official government holiday, meaning millions of us have Friday off, too.

Toasting and taxing: All this toasting of our national independence also makes state treasurers very happy. State tax collectors pocket a portion of our beer, wine and hard liquor purchases.

Is it just me, or do you also get a kick out of the continued connection of beverage taxes to Independence Day?

We shoot off fireworks and raise taxable beverages to commemorate our break from Great Britain that was prompted in part over a tax on tea. Of course, for better or worse we now at least have representation for today's alcoholic beverage taxes.

If you want to see just how much in tax you're paying for your toasts this Fourth of July and the rest of the year, check out the maps created by the Tax Foundation.

If you prefer a glass of Cabernet or a shot of whiskey, you also can check out the Tax Foundation's state-by-state excise tax rates on wine and hard liquor.

Don't drink and drive: Whatever beverage you choose to celebrate the Fourth of July, drink it responsibly.

And be extra careful. More people are out and about and also imbibing this long holiday weekend, with way too many of them getting behind the wheel of a car.

In fact, July 4th often beats out New Year's Day as the deadliest day on American roads, according to the National Highway Traffic Safety Administration. More than half of those fatal accident deaths are due to alcohol.

Not to bring down your buzz, but I'd sure like to have all y'all back reading the ol' blog, even with a hangover, on July 5.

Friday, June 05, 2015

Burning Man began as a bonfire on San Francisco's Baker Beach in 1986 where a handful of folks celebrated the summer solstice.

It's now a week-long festival that drew almost 66,000 revelers last year to Black Rock City, the temporary Nevada desert town that springs up in late summer to support the event.

Burning Man photo by Aaron Morgan via Flickr

As the participation has increased, so has the price to be a part of Burning Man.

For this year's event, which runs from Aug. 30 through Sept. 7, top tier pre-sale tickets issued back in January cost $800 each. Remaining tickets now go for $390 apiece.

And soon, the Nevada Treasury will get a part of the money spent on the festival.

New entertainment tax: The Silver State has revised its live-entertainment tax, expanding its reach from cabaret performances to the increasingly popular festival market. Tickets to Burning Man and other gatherings, such as the Electric Daisy Carnival in Las Vegas, soon will be subject to a 9 percent tax.

In its original version, Nevada's live entertainment tax was expected to generate about 4.3 percent of the state's $6.3 billion budget for 2015 to 2017. Analysts have not done the math on the revenue expected from the revised tax, but estimate that it should be similar.

Burning Man bean counters, however, have run the numbers. They say the new state tax will cost them $2.8 million. The festival reportedly is undecided as to whether to pass the tax on to festival goers.

"Burning Man participants contribute more than $40 million annually to the Nevada economy; they pay their fair share of sales and gas taxes, and they are tremendously supportive of local businesses," Jim Graham, a spokesman for the nonprofit Burning Man Project, told BloombergBusiness. "To single out a nonprofit for an estimated $2.8 million tax bill is short-sighted."

If you're heading to the Nevada desert this year, don't freak out. You won't have to pony up the added tax money. Once signed into law by the governor, the new tax won't take effect until Oct. 1, so budget accordingly for your 2016 desert sojourn.

The no-tax man's take? And there's one more Burning Man question that remains to be answered. Will committed anti-tax crusader Grover Norquist attend future, taxable conclaves at Black Rock City?

Tuesday, June 02, 2015

I'm not much of a churchgoer, but if the new First Church of Cannabis opens a sanctuary in Austin, I might just drop by services now and again.

The Indianapolis-based marijuana-smoking church has received approval of its incorporation papers from the state of Indiana and, from the more important tax perspective, from the Internal Revenue Service as a tax-exempt 501(c)(3) religious organization.

For the new religious order, that designation means no taxes. For donors, that also means tax deductions if they itemize.

Religious freedom law opens church doors: And the new ministry is looking for donors to help it raise $10,000 to buy a building, its Hemp Temple, where it can hold services, which will commence on July 1.

The original law was aggressively criticized as a thinly veiled effort to discriminate against gay, lesbian, bisexual and transgender individuals. Its reworked version looks to have opened the door for the new weed worshiping denomination.

Founder Bill Levin, whose official title per the church's Facebook page is Grand Poohba (sic) and Minister of Love, insists the church is not just an excuse to smoke pot, which the church plans to grow, but not buy or sell.

"We are celebrating life, love, community involvement. We are doing all the things that churches are supposed to do," Levin told MSNBC. "Because we embrace the cannabis plant as our sacrament doesn't mean we are bad people, just like going to church doesn't mean everybody's good people."

New 12-step order: "I religiously smoke cannabis and I celebrate life and I made it formal," Levin says.

Among that formality are some guidelines for followers. But instead of 10 commandments, the church has the New Deity Dozen:

Don't be an a**hole. Treat everyone with love as an equal.

The day starts with our smile every morning. When you get up, wear it first.

Help others when you can. Not for money, but because it's needed.

Treat your body as a temple. Do not poison it with poor quality foods and sodas.

Do not take advantage of people. Do not intentionally hurt anything.

Never start a fight … only finish them.

Grow food, raise animals, get nature into your daily routine.

Do not be a troll on the Internet. Respect others without name calling and being vulgarly aggressive.

Spend at least 10 minutes a day just contemplating life in a quiet space.

When you see a bully, stop them by any means possible. Protect those who cannot protect themselves.

Laugh often, share humor. Have fun in life, be positive.

Cannabis, "the Healing Plant," is our sacrament. It bring us closer to ourselves and others. It is our fountain of health, our love, curing us from illness and depression. We embrace it with our whole heart and spirit, individually and as a group.

The 12th directive to the so-called Cannabiterians or Cannataerians certainly adds a new twist to the use of incense during religious rites.

And while I haven't smoked cigarettes in three decades and it's been even longer since I inhaled other plant products, I think I could follow most of the church's rules.

Possible criminal consequences: Now for the big non-tax question. Will the church services be busted? Recreational use of marijuana is, after all, illegal in Indiana.

But this smoking of pot, says Levin, isn't recreational, it's religious. He just might be on higher legal ground now.

The U.S. Supreme Court's Hobby Lobby decision that allowed that business and others to opt out of some Affordable Care Act requirements on religious belief grounds has led to the overturning by lower courts of previous decisions that limited religious freedom activities.

And the revised Indiana statute looks to many to be broader than the federal version upon which it was ostensibly based, possibly enough so that the First Church of Cannabis could be allowed to use marijuana as part of its religious ritual without fear of criminal repercussions.

Plus, say legal experts, the paper trail Levin has created to show that his church follows a legitimate faith is going to make it harder for law enforcement to crack down on the group. The state will have to make a compelling case that it has a reason to intrude on a religious group's ordained practices.

A few things, though, are certain.

The law goes into effect at noon July 1. The church's first service will be at 12:01 p.m. that day. And you can be sure that the sanctuary will be packed.

That, however, has not deterred Italian tax collectors. Now they are going after high-end jewelers Paolo and Nicola Bulgari. The brothers, whose watches and bracelets adorn the wrists of the world's wealthy, are accused of tax evasion.

An item from the new Bulgari, or BVLGARI in the trademarked classical Latin lettering that appears in their packaging and ads, line of Serpenti jewelry. Click image for a video of more serpent-inspired watches, bracelets, necklaces and rings.

In addition to the Bulgari siblings, their company's former chief executive officer Francesco Trapani and 10 other company executives have been indicted.

The Bulgari heirs proclaimed their innocence at a preliminary hearing on the charges this week. The judge, however, determined the prosecutors had enough of a case to warrant going to trial this fall.

The Bulgari brothers and others are charged with making fraudulent earnings declarations and evading tax payments of around 3 billion euros, or $4.08 billion. The alleged tax evasion centers on one of the jeweler's subsidiaries based in Ireland.

Midday the green flag drops on the Greatest Spectacle in Racing, the Indianapolis 500.

Then late afternoon racing turns to night driving at Charlotte Motor Speedway in North Carolina, where NASCAR holds the Coca-Cola 600, its longest race.

You now know my day's schedule!

Each of these forms of auto racing are so different, but each is a great display of the skill of the drivers, the strategic abilities of crew chiefs, the team work of the on-track crews, and the brilliance of the engineers.

The F1 cars are the most technologically advanced. Their drivers are paid the most. And that series has the best venues.

I mean really, how can any other racing series compete with the competition under the lights in Singapore, the gorgeous Belgian countryside surrounding Spa-Francorchamps and, of course, the extravagant wealth of Monaco.

Plus, there's the operatic drama that surround F1, both on and off the tracks.

F1 chief's UK tax battle: The latest example of Formula One outrageousness is the tax battle that continues to be fought between Bernie Ecclestone, the race series chief executive officer (pictured at right), and Her Majesty’s Revenue and Customs in the United Kingdom.

The 84-year-old Ecclestone is fighting the British version of the Internal Revenue Service over the tax status of the family trust that's at the center of a bribery probe that threatens his role as head of F1.

Ecclestone insists the Bambino Holdings Ltd. trust fund is for the benefit of his ex-wife and daughters and is nothing to do with him. The fund, however, holds a stake of almost 9 percent in Formula One.

HMRC, however, contends Ecclestone information that made a 2008 agreement over the trust’s status invalid.

BloombergBusiness reports that British tax officials re-opened their investigation of Bambino when it was revealed in a German trial that the trust had made a payment to banker Gerhard Gribkowsky, who Ecclestone claimed had threatened to report him to British tax collectors.

Ecclestone agreed to pay $100 million last year to settle a German corruption case over the matter.

I'm sure Bernie's not thinking about his tax liabilities today. He's in Monte Carlo, set to enjoy his series' premier event.

But given the tax situation's international components, how it might affect the F1 organization and the dollar amount, that $1.6 billion British tax bill is, on this special racing day, this week's By the Numbers figure.

Saturday, May 23, 2015

There were no winners last week in literal national lottery games or in a taxpayer's call to the Internal Revenue Service that turned out to be an unexpected gamble.

Let's start with the lotteries, since there's a possibility that someone (maybe me!) could soon be a multimillionaire.

Lottery prospects, taxes: The Powerball jackpot has climbed to $138 million $154 million, which translates to a lump sum payout of $86.3 million more than $96 million. The numbers will be drawn tonight Wednesday, May 27.*

Another chance at a life of lottery-funded leisure comes on Tuesday, May 26, when the Mega Millions' $214 million jackpot, or $130 million lump sum payout, will (or won't) be awarded.

Yes, those are old Mega Millions tickets. You think I'm going to share my current winning ticket numbers with all y'all and split my millions? No way!

A handful of lottery players, however, did recently collect relatively smaller payouts of $1 million each. That made not only the winners, but also tax collectors happy.

Tax proposed on Pennsylvania lottery winnings: As I noted last week at my other tax blog, when these lottery jackpots were growing, federal and state taxes are due on most gambling winnings.

I say most, because while there's no doubt in Uncle Sam's mind that gambling proceeds are taxable income, a few states, like New Hampshire, exclude these proceeds. Others charge a flat tax rate. Still others increase the tax depending on the amount won. If your numbers come up tonight or next week, check with your state tax office to find out what you owe.

The IRS agent to whom the Massachusetts woman spoke also had called the shock jock. When Stern took the tax rep off hold, the satellite radio personality and all his SiriusXM listeners heard what should have been a private tax conversation.

Tuesday, May 12, 2015

Things are not going so well right now for the bearded bunch of Duck Dynasty.

As far as I can tell -- although I must admit I didn't search very long or hard as I don't watch the quasi-reality cable television show -- Duck Dynasty has yet to get an official renewal order from A&E for season eight.

Then came word that "Duck Commander Musical," the Las Vegas stage production based on the 2012 book "The Duck Commander Family: How Faith, Family, and Ducks Built a Dynasty" by Willie and Korie Robertson, flopped.

The hirsute musical began performances on April 8, held a press opening on April 15 and will stage its last show at the Rio All-Suite Hotel & Casino on May 17. It had been expected to run in Sin City through at least June.

Producers are looking at ways to salvage their investment, perhaps through a national touring company at smaller, more quack-friendly venues across the country.

Louisiana's creative arts tax break program is one of the most generous in the country. Its advocates say it's worth it, pointing to the more than 12,000 state jobs the tax credit supported last year.

But the study by the Louisiana Department of Economic Development that touts the employment benefits also shows that the state got just 23 cents back on each tax credit dollar.

Duck Dynasty, which is based in West Monroe, Louisiana, reportedly gets as much as $415,000 per episode thanks to the state tax credit. Bloomberg Politics reports that the show's production company has submitted expenses, which have yet to be certified by the state, for its first four seasons that would qualify it for $11 million in tax breaks.

Tax credit cuts move forward: Those taxpayers dollars could be reduced if HB 829, approved last week by the Louisiana House of Representatives, makes it into law.

The bill, part of a package put together by lawmakers to plug the Pelican State's $1.6 billion budget hole, would cap the film et al tax credit at $226.4 million annually. It also would limit the amount for any single state-certified production to $30 million.

While the Louisiana House was overwhelmingly approving film credit cuts, the state Senate was passing several separate tax credit reform bills. Now the two credit-cut approaches must be reconciled.

Louisiana's Republican Gov. Bobby Jindal originally balked at the film credit cuts, but the magnitude of his state's fiscal trouble prompted a slight change of heart. The governor (and possible GOP presidential nominee candidate…again) reportedly now is willing to support cuts to the film tax credit program as long as they are offset by tax reductions elsewhere.

If you're a fan of the Robertson clan, you might want to flock to your nearest DVD outlet and pick up the existing Duck Dynasty series for your personal collection. The duck calls might be soon silenced, if not by TV executives, then by state tax writers.

Weekly Tax Tip

Back-to-school tax holidays are back -- It's a late summer perennial, states offering shoppers special days to buy tax-free clothing, computers and classroom supplies. This year 17, and maybe 18 soon, will hold the sales tax holiday weekends or longer. The events save families a few bucks if they follow all the rules. (July 29, 2015)

You also can get a refresher of the Daily Tax Tips posted earlier this year on their respective filing season monthly pages: January, February, March and April.

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Counting Down to Tax Day

Did you get an extension on April 15to file your tax return?You are not alone.Our countdown clock will make sure that all of us still workingon our tax returns don't missthe Oct. 15 extended deadline.

Time for Tax Tasks

July 1: This is the day on which many states' new laws take effect. This year, gasoline taxes are getting a lot of attention. While federal lawmakers refuse to hike the excise tax that Uncle Sam collects on fuel, some state lawmakers are not nearly so reluctant. Seven states increased their gas and/or diesel excise taxes today. They are California, Georgia, Idaho, Maryland, Nebraska, Rhode Island and Vermont.

July 4: Happy 239th Birthday, America! Most of us will never be totally independent of taxes, but we can celebrate fewer tax hassles.

A tax professional can help you get your tax life in shape, whether it's taking steps to lower your 2015 bill or file that 2014 return that's due by the extended Oct. 15 deadline.

July 10: Do you get tips as part of your job? If so and you received gratuities totally $20 or more in June, use Form 4070 to report them today to your employer.

July 14: The 2015 Atlantic/Gulf of Mexico hurricane season has been relatively tame, with just two named storms (Ana and Bill) so far. But we can't get complacent. Hurricane season, being ticked off on the countdown clock below, can ramp up quickly and will officially continue through Nov. 30.

To prepare for a tropical storm's landfall or the associated rain, flooding and tornadoes that accompany them, check out the ol' blog's special Natural Disasters Resources page. It has physical and financial preparation tips.

July 17: Ah, summertime and the living is easy … as long as you have a great day camp where you can send your kids. Working parents can use the day camp's costs to help claim the child and dependent care credit.

July 21: For older youngsters, getting a summer job is a rite of passage. It's a great way for them to earn some spending money -- or sock away a bit for coming college costs --- and learn life-long financial responsibility lessons. They'll also get schooled on the role of taxes taken out of their paychecks.

July 24: In addition to putting some summer job earnings toward college savings, your young employee can start building a retirement nest egg by opening a Roth IRA.

July 31: Now that we're into the last half of 2015, it's a good time to make some midyear tax moves that can help reduce your coming tax bill, such as evaluating your portfolio for losing stocks that can offset any gains and making deductible donations to your favorite charity.

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I gotta tell ya ...

AKA Disclaimer:

I am a professional journalist who has been covering tax issues since 1999. I am not a professional tax preparer. The content on Don't Mess With Taxes is my personal opinion based on my study and understanding of tax laws, policies and regulations. It’s provided for your private, noncommercial, educational and informational purposes only. It’s not a recommendation of any specific tax action(s) you should take. Similarly, mentions of products or services are not endorsements. In other words, my ramblings on the ol' blog are free advice and you know what they say about getting what you pay for. That's why when it comes to filing your taxes, I urge you to get additional, professional, paid-for guidance from an accountant, Enrolled Agent or other qualified tax professional who is familiar with your individual tax circumstances.

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